Scheme (CIS) deductions. If you don’t have sufficient deductions in the month you make payment or over the coming months to cover the amount of statutory payment you are entitled to recover then you can apply to HMRC for a payment to cover the balance. To apply for funding you’ll need to provide us with information about your PAYE scheme and details of the statutory payments that your claim relates to. Full details of the process can be found on our website at www.hmrc.gov.uk/paye/employees/statutory-pay/funding.htm . With effect from the beginning of June a change is being introduced to the process and you should take this into consideration when making an application for advance funding. An application for advance funding should be made no more than four weeks before the first payment of statutory payment is due. We will not issue payments more than four weeks before the statutory payment is due to be paid to your employee(s). If your application is received too early it will be returned to you and you will need to make another application at the appropriate time. With claims that cover two tax years, funding will be issued in two instalments. We will send a payment relating to the current tax year and the balance will then follow in the first month of the new tax year. Any new rates will be taken into account with any payment which spans two tax years. Penalties If you obtain incorrect funding or include incorrect statutory payment information on your return, either fraudulently or negligently, you could be liable to a penalty up to a maximum of £3,000 per offence. We will charge a penalty for each employee for whom you incorrectly claimed advance funding or include incorrect information for on your returns. If the claim spans more than one tax year we will charge a penalty for each year. A repeat offence will increase the amount of the penalty. Recovery With the exception of Statutory Sick pay (SSP), you can recover most if not all of the SP you paid to your employee. The amount you can recover depends on your total employee’s and employer’s NICs you paid in the ‘relevant’ tax year. The amount of SSP if any you can recover is dependent on the amount of SSP you have paid in any tax month and your total gross NICs in that same month. Full details can be found on our website at www.hmrc.gov.uk/paye/employees/statutory- pay/index.htm . It is important that you only recover the amount you are entitled to and do not claim the small employer’s compensation rate unless you have an annual NICs liability of £45,000 or less.
Miscellaneous Agency Workers Regulations
AGENCY WORKERS REGULATIONS DRAFT GUIDANCE PUBLISHED
6 April 2011 Comprehensive draft guidance on the Agency Workers Regulations due to come into force this October has been published. Each section covers the key provisions of the Regulations and, where possible, is accompanied by useful links and related flowcharts and desktop downloads.
CIPP Policy News Journal
09/10/2012, Page 202 of 234
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